Trading Tax - Mar/Apr 09

Resident tax expert Lee Hadnum answers readers’ most pressing trading tax questions.

Q1. I was a short Sterling trader between June 2007 and November 2007 and suffered losses of around £20,000. My account was funded by a loan of £25,000 I took from the bank. Before being a self-employed trader I was in full employment. Can I claim some tax back through the early trade loss relief scheme against total income?

A. You could, but you would need to establish that you were a financial trader as opposed to a financial investor. The fact that the finance was by way of a loan would be a good indicator of a...

Lee Hadnum is a Chartered Accountant and Chartered Tax Adviser, and is the Editor of the tax planning website - www.wealthprotectionreport.co.uk. Email your questions to Lee at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.

This article was originally published in the Mar/Apr 09 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd. If you are not a subscriber, click here to subscribe, or to purchase this issue as a single back issue, click here.

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